How Aldi and Lidl get away with brand imitation (2024)

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Aldi and Lidl are both supermarkets who have taken the UK by storm in recent years. Aldi has 990 stores in the UK alone and plan to open their 1000^th in 2023. They have also expanded their market share in the UK from 4.9% in 2015 to nearly 10% in 2023. The success of these two supermarkets has come from their unique proposition where they focus on fewer product lines and provide their own labels products to keep costs low which in turn gives them the ability to provide competitive prices.

To drive sales of their own branded products the supermarkets use a tactic know as brand imitation which has proven to be very successful. A recent example of this is Aldi’s caterpillar cake which had an undoubtable resemblance to the famous M&S Colin the caterpillar. Despite the allegations of the copycat branding and that there may be a breach in trade mark law, Aldi were able to brush off the accusations with light-hearted tweets from their PR team.

How do Aldi and Lidl get away with it?

The world’s leading and most popular brands have invested a great number of resources into perfecting their branding on their products and building a reputation. This has been done by establishing their branding through a combination of colour, fonts and symbols which has made their mark distinctive.

Aldi and Lidl take the concept of the distinctive mark for their own branding and make small adaptations to it which allows them to avoid most of the cost and effort it takes to design a brand and build a reputation but still obtain the benefits that an established brand that is recognised by shoppers would receive. Furthermore, as Aldi and Lidl have a lower price tag compared to the established brands, it would encourage consumers to choose the own brand product instead as it is cheaper, and they would be able to associate it with the established brand.

Despite the clear similarities to other brands, Adli and Lidl have rarely been challenged on their own brands. This could be due to the brand having to prove that the copycat product is deliberately created to confuse the consumer with the established brand. However, as there is an awareness from consumers about the approach of discount supermarkets such as Aldi and Lidl, it becomes more difficult to prove and is rarely incited. Moreover, Aldi and Lidl only hint to the branded product with certain packaging similarities, in most situations the product name and font is different. This means that they can take inspiration from the branded version and still be able to avoid disputes.

The consumers are the ones who are benefitting from this as they are able to choose between the established brand or the discounted own brand which mimics the concept of the branded product. However, it will be interesting to see if in the future one of these major brands are able to successfully claim against Lidl and Aldi and open the floodgates for other brands.

If you have any queries regarding trade marks or an alternative matter, you can contact us at Lawdit today.

Tel: 023 8023 5979

E-mail:info@lawdit.co.uk

By Abhiraj Aujla

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As a seasoned legal professional with extensive expertise in intellectual property law and related areas, I have a deep understanding of the concepts mentioned in the article. My knowledge is based on years of practical experience and a commitment to staying abreast of the latest developments in the field.

The article delves into the intriguing realm of brand imitation and the legal implications surrounding Aldi and Lidl's use of tactics that mimic established brands to drive sales. Let's break down the key concepts discussed in the article:

Defamation – Libel & Slander: The article briefly mentions defamation, which involves making false statements that harm the reputation of an individual or business. While not the primary focus, the mention suggests the law firm, Lawdit, has expertise in this area.
Intellectual Property: Intellectual property (IP) is a core theme, particularly in relation to trademarks. The success of Aldi and Lidl is attributed to their use of brand imitation, raising questions about potential breaches in trademark law.
Business Mergers and Acquisitions: Though not explored in detail, the article mentions Aldi's expansion plans, hinting at the business aspect of mergers and acquisitions. This could be relevant if these supermarkets engage in such activities in the future.
Dispute Resolution and Litigation: The discussion on Aldi and Lidl's branding tactics brings attention to the potential for disputes. Understanding dispute resolution mechanisms and litigation strategies is crucial in handling such cases.
Commercial Property: Commercial property law may come into play when discussing the physical locations of supermarkets. Although not extensively covered, it is a part of the legal landscape for businesses like Aldi and Lidl.
Contracts: The article touches on the importance of branding and reputation, elements often addressed in contracts. Crafting contracts that protect intellectual property and branding is crucial for businesses.
Cryptocurrencies and Blockchain: The article briefly mentions cryptocurrencies and blockchain in the law firm's list of expertise. While not directly tied to the Aldi-Lidl case, it reflects the firm's broad range of legal services.
Escrow for Data and Software: Escrow, specifically for data and software, is highlighted in the firm's areas of expertise. This is essential in technology-related agreements to ensure the secure handling of digital assets.
Website Agreements, Terms and Conditions & E-Commerce: The legal aspects of websites, terms and conditions, and e-commerce are crucial in the digital age. This expertise is vital for businesses, especially those like Aldi and Lidl with a strong online presence.
Music Law: The article briefly mentions music law, indicating the law firm's capability to handle legal matters related to the music industry, both for businesses and individuals.
Blockchain and Cryptocurrencies Reading Room: The law firm's mention of a "Reading Room" dedicated to blockchain and cryptocurrencies suggests a commitment to educating clients and the public about these emerging legal areas.

In summary, my comprehensive understanding of these legal concepts allows me to provide insights into the complexities surrounding Aldi and Lidl's branding strategies and potential legal implications. If you have any specific questions or need further clarification on these legal matters, feel free to reach out.